August 21, 2024
05:19
05:19
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UK home prices dip, but buyer activity surges
The UK's largest real estate website, Rightmove, says the Bank of England's recent decision to cut interest rates has "sparked a welcome late summer boost in buyer activity." While asking prices have dipped, Rightmove is predicting a busy autumn for the housing market. Meanwhile, China's housing market is in crisis, with prices falling apart from luxury properties. The latest Rightmove House Price Index reveals that average asking prices in the UK dropped in the first weeks of August by 1.5% between July and August, mainly due to the summer holiday slowdown, when many buyers take a break from house hunting. But, this year's market dynamics are unique. The Bank of England's first interest rate cut in four years, from 5.25% to 5%, led to a decrease in the average five-year fixed-rate mortgage to 4.80% from 5.82% a year ago. Thats meant more cheaper mortgages from high street lenders and significantly boosted buyer demand. As a result, the number of potential buyers has surged by 19% compared to the same period last year, up from the 11% increase in July. Rightmove is now predicting a busy autumn, with average asking prices expected to rise by 1% - before it said it'd be falling. On the other side of the world, China's property market is facing challenges, with new home prices declining for the 14th consecutive month in July. The top 100 developers have reported a 40% drop in home sales during the first half of the year. Despite the overall downturn in China's property market, there's a bright spot in the luxury market with sales of premium homes increasing for seven months in a row.
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